Budget 2025: Niranjan Hiranandani Says Prime Minister Will Certainly Look At New Ways For GDP Growth | NewsX Exclusive

Finance Minister Nirmala Sitharaman presented her eighth consecutive Union Budget for the fiscal year 2025-2026, outlining key financial measures and policy changes. One of the major highlights of the budget is the revision in the prices of various consumer goods, with some items becoming more affordable while others see a price increase.

As part of the Budget 2025, the Finance Minister announced an exemption from Basic Customs Duty (BCD) on 36 essential drugs used for the treatment of cancer and rare diseases. This move aims to make life-saving medications more accessible and affordable for patients.

This is the second full budget under the Modi 3.0 government, following their return to power in the 2024 Lok Sabha elections. The budget focuses on ten key sectors, including agriculture, manufacturing, employment, MSMEs, rural development, and innovation, aiming to boost economic growth and support various industries across the country.

While speaking to Megha Sharma, Executive Editor, NewsX, Mr. Niranjan Hiranandani, co-founder of Hiranandani Group shared his views on Budget 2025 praising that the budget focused a tremendous amount on the middle class, which is the right thing to do. He added that it is going to create surpluses, where the buying power of the country is going to help.

Budget 2025 For Real Estate | NewsX Exclusive

Speaking about the real estate sector, Mr. Niranjan Hiranandani told NewsX, “And as far as the real estate is concerned, I think the significant part was the issue of, the Swamy fund, which we were requesting. It should be further increased and enhance. They had done earlier an investment of 10,000 in swamy fund, one, which I believe has fixed up one lakh houses. Second fund now is suggesting 15,000 crores.”

He added, “But I think, that is going to be just that one swamy fund. What we needed is at least two or 3 or 4 fund where we don’t need any subsidy from the central government, but we need the same provision which is available in the Swamy fund, which is last in, first out, in order to take care of the stock projects that are there.”

Mr. Hiranandani also added, “So I think that is one thing which is good, but it is, I think, inadequate. The second part of it, which is extremely important, is the skills area in the real estate sector. They have talked about five centers of excellence. Today’s date, let me tell you that we are dire short of skills. So on one side there is unemployment in the country and on the other side we are dire short of skills in the sector, which I’m talking about what carpenters, plumbers, electricians, painter marble layers, and small things like this.”

Mr. Hiranandani: “Last Year, The Investment Was Short”

Mr. Niranjan Hiranandani then spoke about the skilled workers telling NewsX, “A statement made by LMT about 4 or 5 weeks ago was that they needed, 25,000 skilled workers. A company like ours needs 500 skilled workers, shortage in our own company. So by and large, what is happened is that you need to take up that. The next point I want to point out is I think there is inadequate new investment taking place.”

He continued, “Last year, the investment was short. This year, the 11 like crores which is being proposed I think is an understatement. We need it much more to be done, especially in where we already got deficit under control. We needed to put in more long term investment commitment that needs to be done because without that we will not be able to achieve our target.”

The renowned businessman added, “Prime Minister’s target of exit border to 2047, because the growth minimum you need is 8%. So a further emphasis on, housing and urban infrastructure, similar that was done in China, which brought about, double digit growth in GDP in China in those years where they focused not only on manufacturing, but also on urban, infrastructure and housing actually caused it.”

“Prime Minister Will Certainly Look At New Ways For GDP Growth”

When asked if the 2024 Budget was a more populist budget versus 202, comparing the two Mr. Niranjan Hiranandani told NewsX, “Oh, I think I think it’s quite focus on the the world of business. But I think, it’s also for, catering for a sector which has, which is, has a potential of further investment and further expenditure. And I think the demand which has come down in the last couple of weeks, months, I think the probe of the finance minister wants to make sure that that demand, which is across the board in from the middle class, which has actually come down, including the affordable housing segment, in the real estate sector, actually will be fed by the middle class, which will actually have surpluses with them, or the potential surpluses which will enable them or encourage them to buy a house or also spend money.”

He added, “So I think the downturn in the economy, which is slightly showing up in the last three months, is thought to be corrected also and also populist, of course, anything you reduce taxes, everybody’s going to be happy. But I’m looking at the long term benefits of this and I think that’s a positive story. Okay. Also, you know, in the Economic Survey yesterday, there was an announcement that the projected GDP growth rate is going to be 6.8% in 2025, 2026.”

When asked how does he think the budget that has been announced will be able to help this figure climb up? He added, “There is no way that we will go below that. My my target is thinking that the Prime Minister will certainly look at new ways to actually go to 8 or 9 or even 10%. That should be the target. I do believe interest rate should be brought down. I think somewhere down the line that is causing a lot of problems at the, you know, middle class and the lower middle class, especially in the housing sector. The EMI is to be paid by the by the persons who are buying the houses. There is a lot of problem in the affordable segment.”

What’s In For The Middle-Class?

When asked what percentage of circulation of money into the market will allow for the GDP to increase because of these revised tax slabs? To this Mr. Niranjan Hiranandani, co-founder of Hiranandani Group told NewsX, “It’s a question of a positive feel, that middle class have. And once that gets in the blood, you will see that the growth story or the expenditure levels going up already in the tourism sector, you can see huge demand in terms of, middle class traveling all over India and even parts of the world.”

He concluded, “The idea is to create that feel that you are going to have more surpluses and will enable more people in the middle class level to spend more and actually live a better quality of life.”

Check out the full interview here:

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